The initial forex reaction to the yesterday US election has been modest US dollar strength, which took GBPUSD down to test its 14-month low at 1.5868. Taking a broader look at the pair, it remains below the bearish trend line that has guided rates lower since the mid-July high near 1.7191.
Today on the economic agenda from the U.K we have the BoE interest rate decision and the monetary policy statement that is expected to stay unchanged. From the US we will have the initial jobless claims in October that is expected to fall from 287K to 285K showing that labor market is stronger. Also we will have the continuing jobless claims in October that is estimated to fall from 2.384M to 2.360M displaying that the US economy is in the right track.
GBPUSD initially fell on yesterday session but found enough support at 1.5868 to turn things back up and closing near the high of the day creating a hammer pattern.
Expecting upward move to 1.6158 on a break of above previous day high at 1.6021 (scenario 1).